Digital asset exchange Huobi has announced that it will shut down its Cloud Wallet services because of “strategic and product adjustments,” a move that took users of the exchange by surprise.
Huobi made the announcement via a post on its website, stating that the company will halt all activities related to maintenance and upgrading the Cloud Wallet starting immediately. Users have been urged to transfer all their tokens and non-fungible tokens from the wallet to other platforms within the three-month withdrawal period provided by the exchange.
“If you are still using the Cloud Wallet or have assets stored in it, we recommend you to transfer your tokens and NFT assets to your Huobi account or other on-chain addresses as soon as possible. Withdrawal services for Huobi Cloud Wallet will remain available for three months,” Huobi’s post read.
Huobi stated that it had created several tutorials and demos for beginners using the Cloud Wallet feature to ease the sudden transition. Huobi urged users not to send any assets to their Cloud Wallets, confirming the platform’s official discontinuation date as May 13.
The Huobi Cloud Wallet was launched in October 2021, allowing users to store different tokens without using private keys held by a third-party management system under escrow. At that time, the product allowed users to interact with a myriad of decentralized finance (DeFi) tokens without hassles, going on to support publicly distributed ledgers like Ethereum (ETH), Binance Smart Chain (BSC), and Polygon (MATIC).
The embattled exchange warned users to avoid using third-party assistance in withdrawing their funds to avoid falling victim to fraudulent schemes. In January, the exchange announced the delisting of 33 tokens from the platform over violations of the listing requirements and falling short of the “requirement of having $50,000 in trading volume.”
Difficult times for Huobi
Huobi has been weighed down by a series of unsavory events around the exchange over the last couple of months. Recently, the exchange confirmed that it was laying off 20% of its staff to weather the storm triggered by the extended bear market and the implosions of several centralized entities.
Huobi Global’s subsidiary in South Korea disclosed plans to sever ties with its parent company, citing the tumultuous patch faced by Huobi Global and the need to “strengthen its position as a domestic company.” The Korean branch confirmed that it would begin repurchasing its shares from Huobi Global as it looks to distance itself from the tag of being a Chinese company.
Furthermore, Huobi has received a barrage of criticisms following the announcement of its reserves on the grounds that the bulk of the reserves was made up of its Huobi Token (HT).
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